What is Class of Insurance?
Class of Insurance is The term used to describe related lines of business. Usually done for underwriting and/or premium calculation purposes. For example: Domestic insurance as a class of business may include Home Building insurance, Contents insurance, Landlords insurance etc. The class of Motor insurance may include private motor vehicles, motorcycles, trucks, tractors and mobile machinery. Insurers generally set up their own guidelines for each class of insurance and how broad the product class spectrum is to be. This is usually done in relativity to the objective of the insurer when classifying the risks.